Finding 960839 (2023-001)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-03-26

AI Summary

  • Core Issue: There is a significant deficiency in internal control due to minimal segregation of duties in accounting.
  • Impacted Requirements: Proper segregation of duties is essential for strong internal controls and should be implemented whenever feasible.
  • Recommended Follow-up: Segregate responsibilities in accounting and ensure close supervision and review by management and the board to mitigate risks.

Finding Text

Type of Finding: Significant Deficiency in Internal Control over Financial Reporting. Condition: There is minimal segregation of duties among personnel involved in the accounting function. Criteria or Specific Requirement: A proper segregation of duties is an important component of a system of strong internal controls and should be implemented if possible. Cause: There are a small number of personnel to whom to allocate responsibilities in accounting functions. Effect: A lack of segregation of duties increase the risk that errors may occur and not be prevented or detected on a timely basis. Repeat Finding: Yes, Prior year finding 2022-001. Recommendation: Responsibilities and duties should be segregated whenever possible. When this condition exists, management's and the board's close supervision and review of accounting information can help to prevent or detect errors and irregularities.

Categories

Internal Control / Segregation of Duties Reporting Significant Deficiency

Other Findings in this Audit

  • 384397 2023-001
    Significant Deficiency Repeat
  • 384398 2023-002
    Significant Deficiency Repeat
  • 960840 2023-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $920,900
14.195 Section 8 Housing Assistance Payments Program $19,056